Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Digital gold loans in India

Learn all that you need to know before getting a digital gold loan in India.

While the COVID-19 pandemic continues to batter India’s economy, a wave of new-age fintech companies and traditional lenders have started offering digital gold loans to help Indians avail gold loans without having to visit any branch.

This guide will take you through the features and costs you’d need to consider when applying for a digital gold loan.

Compare a range of Gold Loans in India

Name Product Interest Rate Processing Fee Loan Amount Loan Tenure
IIFL Gold loan
9.24% p.a. - 24% p.a.
₹ 0 onwards depending on scheme availed
₹3,000 to ₹10 lakh
3 to 11 months
Meet urgent liquidity needs in as fast as 30 minutes. Benefit from a range of flexible loan tenure, repayment options, and competitive interest rates.
Muthoot One Percent Loan
12% p.a. - 12% p.a.
0.25% to 1% of loan amount
₹1,500 to ₹2 lakh
7 days to 12 months
Enjoy the lowest interest rate with this 12-month gold loan scheme when you pay the interest in full every month.
SBI Personal Gold Loan
7.5% p.a. - 7.5% p.a.
0.50% of the loan amount + applicable GST
₹20,000 to ₹50 lakh
3 to 36 months
Pledge your gold ornaments and borrow up to ₹ 50 Lakhs for a maximum of 36 months. Only minimum paperwork required.
ICICI Bank Gold Loan
ICICI Bank Gold Loan
12% p.a. - 16% p.a.
0.25% to 1% as per the loan amount
₹10,000 to ₹10 lakh
6 to 12 months
Fulfill personal or business expense requirements instantly by pledging gold jewelry with at least 18-carat purity.

Compare up to 4 providers

What are digital gold loans?

A gold loan is a secured loan wherein gold assets is provided as collateral security. But instead of bringing the gold to the lender’s branch in person, borrowers can now secure gold loans conveniently and discreetly at the comfort of their homes. This new service is thanks to online loan applications and digital-first underwriting-to-disbursal process.

Until a decade ago, most of the lending was dominated by the unorganised sector through local pawnbrokers and money lenders. But with the rapid expansion of the gold loan market in India, organised institutions like banks and non-banking finance companies (NBFCs) have shifted their focus on digitisation and streamlining their lending processes to reach a wider audience.

How do digital gold loans work?

The process for loan applications may vary from lender to lender, but taking out a digital gold loan usually consists of the following steps:

  1. Apply for a new loan. Most lenders will have an ‘Apply now’ button on their website. Simply provide your mobile number and other required information. A company representative will get in contact with you to and guide you through the loan process.
  2. Door-step evaluation. The lender will arrange for a loan manager or company representative to your address for on-the-spot evaluation of your gold jewellery. After evaluation, you’ll be offered a credit amount. This entire process usually takes less than 30 minutes.
  3. Receive loan proceeds. If you’re agreeable with the amount and terms, the approved credit will be transferred to your bank account.
  4. Gold delivered to a secure storage facility. Once the money has been transferred to your account, the representative proceeds to pack your gold ornaments in secure packages, which will be transported to a secure vault.

Benefits of digital gold loans

There are quite a few advantages to availing gold loans online:

  • Convenience. There’s no need for you to bring your valuable jewellery to a physical branch since the lender will arrange for a representative to visit your location to complete the gold appraisal and loan process.
  • Privacy. Customers who aren’t comfortable with being seen availing a gold loan in a public location can certainly benefit from a scheduled visit at their preferred location.
  • Minimal documentation. You’ll only be required to provide your ID and proof of residential address. Unlike other loan types, there’ll be no need for documentation such as income certificates, bank statements and tax returns (ITR).
  • Fast approval and cash disbursement. As lenders move towards a digital application and evaluation process, borrowers may receive their funds in as little as 30 minutes after approval.
  • Online repayment. You can make payments for your gold loan instalments through an online platform or mobile app.
  • Easy loan estimation. Most lenders have a gold loan calculator on their website which can provide you with a fair idea of a gold loan per gram.
  • Safe storage. Lenders are required to store all gold ornaments taken as collateral in branches with an appropriate level of physical infrastructure and security measures stipulated by the Reserve Bank of India. Some non-bank financial companies (NFBC) also store the pledged gold in the vaults of their partner banks.

Which providers offer digital gold loans in India?

There are a few online banks available in India, including:

  • indiagold. A gold-based lending startup and mobile app that provides instant gold loans, gold purchase and secure gold locker services in Delhi NCR (expected to be available nationwide soon).
  • Rupeek. An asset-backed, digital gold loan platform based in India. The company, with partnerships with banks such ICICI Bank, Karur Vysya Bank and Federal Bank, specialises in offering hassle-free gold loans to customers without requiring them to step out of their home.
  • Muthoot Finance. A popular NBFC for gold loans, Muthoot Finance has launched a Loan@Home’ app-based digital service to help borrowers avail a gold loan at the comfort and privacy of their home.

How to apply for a digital gold loan in India

With an increasing number of Indian lenders digitising their loan application process, borrowers can now get a gold loan at the comfort of their home. Instead of bringing your gold collateral to a physical branch, these lenders generally give you a call back after receiving your online application and arrange to send a loan manager directly to your address.

Required documents

You’ll typically be required to submit any of the following identity documents when taking out a gold loan:

  • Valid passport
  • Valid driving license
  • Voters’ ID card
  • Aadhaar card
  • PAN card or Form 60
Back to top

More guides on Finder

  • How to invest in IPOs from India

    Learn what an initial public offering (IPO) is, how an IPO works and the advantages and risks of IPOs.

  • Banks with Samsung Pay in India

    Check if your bank supports Samsung Pay and learn how to set up and use the digital wallet for contactless payments.

  • HDFC Bank Instant Savings review

    This article provides a full review of HDFC Bank’s Instant Savings account. Read about its features, fees, drawbacks, and how to open an account.

  • Nexo review: Is it safe for high interest returns?

    Nexo is a cryptocurrency lending and borrowing platform that offers high interest rates on cryptocurrencies, stablecoins and fiat. We review the features available and look at how safe your funds would be on the platform.

  • Banks with Google Pay in India

    This article provides a complete list of the banks that support Google Pay in India, plus how to set up the digital wallet in your device.

  • YONO SBI details and review

    Learn more about the YONO SBI platform and a range of SBI bank account to decide whether it’s a good fit for your needs.

  • What is Compound Finance?

    We explore how to use Compound Finance for lending and borrowing.

  • Where to buy TRON in India

    If you want to know where and how to buy, sell and store TRON (TRX) in India, you’ll find all the essential information in this handy guide.

  • Bitcoin Cash (BCH): How to buy, sell or trade

    If you want to buy or trade Bitcoin Cash (BCH) but you don’t know how, this guide contains step-by-step instructions on how to get started.

  • Gold loans online

    Unlock fast cash with your idle gold at the comfort of your home. Find out how to apply for a gold loan online and what to look out for.

Go to site